The Drewry World Container Index (WCI) has declined by 3% this week, showing signs of stabilization after a period of significant volatility. The market’s recent unpredictability began in April following the announcement of new US tariffs, which caused shipping rates to surge throughout May and into early June. This was followed by a steep decline that has now lost momentum, with the rate of decrease slowing considerably since mid-July.
The pre-tariff rush to ship cargo has concluded, contributing to the calmer market conditions. Transpacific spot rates saw a drop this week, with rates on the Shanghai–Los Angeles route falling 4% to $2,534 per forty-foot equivalent unit (FEU). Similarly, rates on the Shanghai–New York route slid by 7% to $3,826/feu.
According to Drewry, spot rates are expected to remain less volatile in the immediate future. However, Drewry’s Container Forecaster anticipates that the supply-demand balance will weaken again in the second half of 2025, which is projected to cause a contraction in spot rates. The timing and degree of any future rate changes will be influenced by the unpredictable nature of future tariffs and any related capacity changes stemming from the introduction of US penalties on Chinese ships.
